A Fundamental Comparison of International Real Estate Returns

This study analyzes commercial real estate returns in Australia, Canada, the United Kingdom, and the United States over the period 1985-95, from the perspective of a U.S. investor. Because national indices can consist of differing property mixes, this study separately analyzes the office, retail, and warehouse sectors. Moreover, these analyses also convert total returns into their fundamental components: initial yield, growth in income, and shifts in capitalization rates. The paths of currency-adjusted income and asset values and, therefore, capitalization rates are also presented. Generally speaking, the fundamental components of retail returns across the four countries exhibit greater divergence than the office and warehouse sectors. It is interesting that the U.S. property sectors showed the worst performance, while the Australian retail and the British office and warehouse sectors were the best performers (both before and after currency adjustments). Additionally, the currency-adjusted Australian returns were adversely effected by exchange rate movements, while the British returns were positively effected. Lastly, the correlation of the quarterly percentage change in income was generally lower and less statistically significant that the correlation patterns observed among the other components of return. This might suggest that more idiosyncratic risk can be found in the real estate space markets (as proxied by income changes) than in the real estate capital markets (as proxied by the pricing of the income--that is, capitalization rates), which appear to be more globally influenced.

Competitive Pricing Decisions in Uncertain Times

This article examines the pricing, demand (occupancy), and revenue dynamics in the U.S. hotel industry for the period 2001 to 2007. The results of this seven-year study, which compares hotels\u27 rates to the pricing behavior of competing hotels, reveal that in both bad times (2001—2003) and good times (2004—2007), hotels that offered average daily rates above those of their direct competitors had lower comparative occupancies but higher relative revenue per available rooms (RevPAR). Based on 67,008 hotel observations, this pattern of demand and revenue behavior was consistent for hotels in all market segments (resorts and extended-stay properties were excluded from the study). Overall, the results suggest that the best way for a hotel to have higher revenue performance than its competitive set is to maintain higher rates. This finding suggests that lodging demand may be inelastic in local markets. The results of this study confirm the stance of hotel operators who resist the pressure to undercut competitors\u27 prices

COPA mutations impair ER-Golgi transport and cause hereditary autoimmune-mediated lung disease and arthritis

Unbiased genetic studies have uncovered surprising molecular mechanisms in human cellular immunity and autoimmunity. We performed whole-exome sequencing and targeted sequencing in five families with an apparent mendelian syndrome of autoimmunity characterized by high-titer autoantibodies, inflammatory arthritis and interstitial lung disease. We identified four unique deleterious variants in the COPA gene (encoding coatomer subunit α) affecting the same functional domain. Hypothesizing that mutant COPA leads to defective intracellular transport via coat protein complex I (COPI), we show that COPA variants impair binding to proteins targeted for retrograde Golgi-to-ER transport. Additionally, expression of mutant COPA results in ER stress and the upregulation of cytokines priming for a T helper type 17 (TH17) response. Patient-derived CD4(+) T cells also demonstrate significant skewing toward a TH17 phenotype that is implicated in autoimmunity. Our findings uncover an unexpected molecular link between a vesicular transport protein and a syndrome of autoimmunity manifested by lung and joint disease